During my 40 years in the industry, I’ve seen a lot of change. It has been said, “Change is the only constant.” Not only do I believe that this is true, but that today’s changes are happening at an ever-increasing pace. Disruption is the new buzzword—it’s as applicable in business as it is in both local and global politics. And, it can seem a daunting task to try and keep up at times.
Change creates energy and innovation, but in the face of rapid change relationships are at the core of success. As members of the IMARK community, we have a unique but often under-used opportunity to develop strong relationships with one another. Extending ourselves to each other to maximize the opportunities that IMARK membership provides simply makes good sense. The quality and effectiveness of our relationships can generate a competitive advantage in both the short and long run.
The mutual goal of distributors, manufacturers and manufacturer reps is developing long-lasting, profitable and evolving relationships. Feedback from all directions is essential to improve the customer’s buying experience. The more our suppliers understand the needs of our distributors, the more capable they are of responding to those needs. The more our distributors look for solutions from IMARK suppliers, the more opportunity there is to craft repeatable, profitable opportunities and sustainable growth.
Here are just a few examples of ways in which maximizing our relationships can benefit both distributors and the IMARK supply chain.
OPTIMIZE STOCK ORDERS
A couple of years ago, I met with our purchasing team to see where our spends were going with wire and lighting. After reviewing the spends, we were shocked to find that so many were going to non-IMARK vendors and other companies that were not strategically important to our business. After communicating a new strategy to our managers and some sales reps, changes were made. The “more with less” philosophy took over and it’s been incredibly successful for our IMARK relationships and our bottom line. While few would argue with me saying that this is not the most thrilling part of our day, it is the bread and butter aspect of our industry and one of the foundational pillars of any successful operation. The more efficient this process becomes, the more profitable.
I ask my fellow IMARK member distributors, when was the last time you took a long and hard look at your vendor list? There’s a benefit to a “fewer but better” philosophy. Duplication has hidden costs and is often less a conscious choice than inertia. Are there ways to narrow your vendor list and maximize the use of IMARK suppliers? Having a frank conversation with manufacturers and reps when you are narrowing down your vendor selection on commodities might very well open new avenues. Suppliers who are willing to seek feedback from distributors and take action during this narrowing down process can benefit greatly. Suppliers should ask for more business, but be prepared to ramp up services, differentiate yourselves and make a difference while earning this additional business.
GROW TOGETHER IN GAINSHARE
Another asset our company and our key IMARK suppliers value is the IMARK GainShare program. We at Edges Electrical Group are currently reviewing our 2018 IMARK GainShare status with our suppliers (starting with the IMARK mid-year planning process, which is now underway). Our management team is strongly committed to achieving as many of our 2018 GainShare goals as we can.
Our company’s GainShare partners receive 80 percent of our proactive efforts throughout the year. We are always looking for sales growth opportunities for both Edges Electrical Group and our GainShare suppliers. Our joint attention to detail combined with solid execution will pay off. We review monthly reports, tracking all supplier training and marketing efforts along with sales. These reports clearly indicate where additional efforts need to be made. We will hand-select products from GainShare partners that we can sell quickly with promotion at the counters or over the phone. Our sales teams are generally offered spiffs for extra motivation. This process continues to work well for our company and our supplier partners and their sales reps. Our returns from our GainShare success continue to grow year after year.
PARTNER TO IMPROVE THE DISTRIBUTOR QUOTE EXPERIENCE
Relationships, once again, are the key ingredient to a positive interaction. During our I-Net networking discussions of supplier performance, the topics that consistently come up are:
- Response time
- Integrity of answers
- Accuracy of information
- Competitive pricing
GET OUT IN FRONT
Human beings are to a great extent creatures of habit. We follow the path of least resistance in most cases. Behaviorists will tell you that the key to changing an unwanted behavior is replacing it with a beneficial one. Over time, the new behavior becomes a “habit.” In a quickly changing business environment, becoming proactive is imperative. As distributors, we want to create a relationship with our customers that encourages them to look to us for solutions to their needs. It is impossible to do that without an in-depth understanding of each customer’s unique set of circumstances. By enlisting the help of IMARK suppliers and reps and engaging early and often, distributors can foster interdependence with customers. Look for opportunities to jointly call on customers in order to develop an understanding of their situation and needs. Establishing a relationship ahead of the bid process creates a “habit.” Investing time and interest up front creates an opportunity to ask for commitments from mutual customers before the procurement process. Later, when their time and money are on the line, they will consistently reach for you as a resource.
One of the greatest benefits of IMARK is the multitude of venues it provides for us to interact face-to-face with each other. There is an incalculable value to being able to put a face to a name. The personal interaction between suppliers and distributors at an IMARK event is what gives us, as independents, a competitive edge. Choose a setting in which you feel most comfortable—one-on-one meetings, small group discussions or dinner and cocktails—and use the time together to further develop your connections in all directions. The benefits will be reciprocal—that which you give will be that which you receive.